Patna High Court
M/S B. K. Enterprises vs The State Of Bihar And Ors on 5 May, 2023
IN THE HIGH COURT OF JUDICATURE AT PATNA
Civil Writ Jurisdiction Case No.6436 of 2017
======================================================
M/s B. K. Enterprises, through its Managing Partner, Bipin Kumar, Son of
Late Ganpat Chaudhary, Resident of Village- Dhanpura, P.S.- Ara Town,
District- Bhojpur at Ara.
... ... Petitioner/s
Versus
1. The State of Bihar through the Principal Secretary, Department of
Education, Government of Bihar, Patna
1.A The Bihar State Educational Infrastructure Development Corporation
Limited through its Managing Director, Shiksha Bhawan, Bihar Rastra
Bhasha Parisad Campus Acharya Sheopujan Sahay Path, Saidpur, Patna.
2. The Chief Engineer, Bihar State Educational Infrastructure Development
Corporation Limited, Shiksha Bhawan, Bihar Rastra Bhasha Parisad
Campus Acharya Sheopujan Sahay Path, Saidpur, Patna
3. The Executive Engineer, Patna (East) Division, Bihar State Educational
Infrastructure Development Corporation Limited, Shiksha Bhawan, Bihar
Rastra Bhasha Parisad Campus Acharya Sheopujan Sahay Path, Saidpur,
Patna.
... ... Respondent/s
======================================================
Appearance :
For the Petitioner/s : None.
For the State : Mr.Jitendra Kumar Roy, SC-13
Mr. Hitesh Suman, AC to SC-13
For BSEIDC : Mr. Girijesh Kumar, Advocate
======================================================
CORAM: HONOURABLE MR. JUSTICE P. B. BAJANTHRI
and
HONOURABLE MR. JUSTICE ARUN KUMAR JHA
CAV JUDGMENT
(Per: HONOURABLE MR. JUSTICE ARUN KUMAR JHA)
Date : 05-05-2023
Heard learned counsel for the respondents. However,
none appeared on behalf of the petitioner.
2. In the instant petition, the petitioner is challenging the
order contained in letter no.1225 dated 04.02.2016 issued by
the Chief Engineer, Bihar State Educational Infrastructure
Patna High Court CWJC No.6436 of 2017 dt.05-05-2023
Development Corporation Limited, Patna by which Contract
Agreement No.43 SBD of 2011-12 dated 14.03.2013 has been
rescinded and the earnest money deposit, security deposit and
performance guarantee of the petitioner have been forfeited.
3. Brief facts of the case are that an agreement between
the petitioner and the respondents was executed on 14.03.2012
in respect of Group No.USS-06 for construction of Middle
School, Tar, Upgraded Middle School, Devchanda and Middle
School, Khutaha in the District of Bhojpur and as per the said
agreement, the construction was to be completed within 12
months from the date of agreement. The construction work of
Middle School, Tar and Upgraded Middle School, Devachanda
was started on 25.02.2013 and 18.08.2012, respectively.
However, construction work of Middle School, Khutaha was not
started due to non-availability of land. When the construction
work was not completed on time, the respondent authorities on
several times directed the petitioner to complete the work.
Lastly, vide letter dated 04.02.2016, the Chief Engineer
rescinded the aforesaid contract and forfeited the earnest money
deposit, security deposit and performance guarantee. Being
aggrieved by the decision of the respondent authorities, the
petitioner filed the present Writ.
Patna High Court CWJC No.6436 of 2017 dt.05-05-2023
4. The petitioner has challenged the aforesaid order
mainly on the ground that the reason which has been assigned to
rescind the work i.e. to cause delay in completion of work is not
sustainable in the eyes of law as the work place was not made
available to the petitioner in time, therefore, the delay could not
have been attributed to the petitioner. Secondly, the petitioner
was not given extension of time to complete the work even
through he had filed an application for the same. Lastly, the
petitioner was ready to complete the work if the grievance of the
petitioner is reasonably considered.
5. On the other hand, learned counsel for the respondents
submitted that in terms of the agreement, the petitioner was
required to complete the said contractual work within twelve
months, but after lapse of about three years and ten months, the
petitioner did not complete the said contractual work in spite of
several directions/instructions contained in Memo No.437 dated
16.01.2015, Memo No.1054 dated 26.12.2014, Memo No.65
dated 27.01.2015, Memo No.1360 dated 19.02.2015, Memo
No.147 dated 09.03.2015, Memo No.7881 dated 01.09.2015,
Memo No.9109 dated 07.10.2015, Memo No.663 dated
30.11.2015, Memo No.693 dated 21.12.2015 and Memo No.06
dated 06.01.2016. It has further been submitted that as even
Patna High Court CWJC No.6436 of 2017 dt.05-05-2023
after lapse of more than three years, the petitioner did not
complete the work assigned to him, therefore, the respondent-
department took the decision to terminate the agreement. The
termination of agreement was communicated vide Letter No.
1225 dated 04.02.2016 and vide letter no.84 dated 17.02.2016,
the Executive Engineer communicated the date for final
measurement to the petitioner and the petitioner was stated to
remain present on the date fixed for measurement. The learned
counsel also submitted that this writ application is devoid of any
merit and is liable to be dismissed.
6. Having considered the material available on record
and further considering the pleadings and submissions, it
appears that in terms of the agreement dated 14.03.2013, the
petitioner was required to complete the contractual works within
twelve months, but after lapse of about three years and ten
months, he did not complete the said contractual work in spite
of several directions/instructions as stated above. Thereafter, the
respondent-department took the decision to terminate the
agreement vide Letter No. 1225 dated 04.02.2016.
7. A counter affidavit has been filed on behalf of the
respondent nos. 1 to 3. It is relevant to quote paragraph nos. 6 to
22.
"6. That it is stated that the construction was
Patna High Court CWJC No.6436 of 2017 dt.05-05-2023
slow and work was not completed on time,
therefore, Executive Engineer, BSEIDC issued
letter vide letter no.1056 dated 26.12.2014 and
directed the petitioner to complete the work very
soon on priority basis.
7. That the construction work was not started
and completed on time therefore, Chief
Engineer, BSEIDC issued show cause notice to
the petitioner vide letter no.439 dated
16.01.2015 and ask why in light of clause 3.3
and clause 4.8 of the SBD and letter issued vide
letter no.6098. dated 07.11.2014 by the
Managing Director, BSEIDC Ltd. the petitioner
would not be debarred in future for
participating in the tender invited by the
BSEIDC.
8. That it is stated that the construction was
stopped for long therefore, Executive Engineer,
BSEIDC vide letter no.63 dated 27.01.2015
directed the petitioner to start the construction
work immediately and complete the work very
soon.
9. That the construction work was not started
and completed on time therefore, Chief
Engineer, BSEIDC vide letter no.1360 dated
19.02.2015 directed the petitioner to start the
unfinished work and complete the same
immediately failing which action will be taken
as per the terms of the agreement for which
petitioner would be wholly responsible.
10. That the construction work was not started
and stopped for long and petitioner not showing
any interest in the Construction, therefore,
Executive Engineer, BSEIDC recommended the
Chief Engineer, BSEIDC vide letter no.145
dated 09.03.2015 to initiate the proceeding for
debarring/ blacklisting the petitioner.
11. That in view of the several letters written by
the officials of the BSEIDC to the petitioner the
construction work was not started therefore, the
petitioner was debarred from participating in
the future tender vide letter no.8105 dated
Patna High Court CWJC No.6436 of 2017 dt.05-05-2023
08.09.2015 of the Chief Engineer, BSEIDC.
12. That despite abovementioned warning the
construction work was not started by the
petitioner, therefore, again letter issued by the
Executive Engineer, BSEIDC to the petitioner
vide letter no.661 dated 30.11.2015 and directed
to start the Construction work within 10 days
failing which he will recommend will the higher
officials to act as per provisions of the
agreement.
13. That despite abovementioned warning the
construction work was not started by the
petitioner, therefore, again letter issued by the
Executive Engineer, BSEIDC to the petitioner
vide letter no.696 dated 21.12.2015 and directed
to start the Construction work within 10 days
failing which he will recommend will the higher
officials to act as per provisions of the
agreement.
14. That the work was not started by the
petitioner despite several reminders and
instruction given by the BSEIDC, therefore,
there is no option for the Executive Engineer,
BSEIDC, to issue show cause to the petitioner
vide letter no.554 dated 18.11.2016 to clarify
why as per clause 3 (iii), 3 (iv) and 3 (v) of the
agreement the contract will not rescind and
further as per Clause 3 (vii) (a) why not to
recommend the higher officials for forfeiting the
Earnest Money, Security deposit and
Performance Guarantee as per the SBD.
15. That the petitioner not shown any interest
for construction of the work therefore, Executive
Engineer, BSEIDC to issue show cause to the
petitioner vide letter no.593 dated 28.11.2016 to
clarify why as per clause 3(iii), 3 (iv) and 3(v)
of the agreement the contract will not rescind
and further as per Clause 3 (vii) (a) why not to
recommend the higher officials for forfeiting the
Earnest Money, Security deposit and
Performance Guarantee as per the SBD.
16. That the petitioner not shown any interest
Patna High Court CWJC No.6436 of 2017 dt.05-05-2023
for construction of the work therefore, Executive
Engineer, BSEIDC recommended vide letter
no.670 dated 24.12.2016 to the Chief Engineer,
BSEIDC to rescind the agreement no.41
SBD/2011-12 dated 14.03.2012 of the petitioner
and for forfeiting his Security deposit and
Performance Guarantee.
17. That the petitioner has completed only 30.1
% construction work of the abovementioned
four School regarding which agreement was
executed between petitioner and BSEIDC.
18. That as per letter issued by the Chief
Engineer, BSEIDC vide letter no.2443 dated
24.03.2017 by which as per Contract Clause
3(iii) of the agreement no.41 SBD/2011-12
dated 14.03.2012 executed with the petitioner
rescind the contract and direction given to the
Executive Engineer to complete the
measurement of the work done by the petitioner.
19. That as per letter no.116 dated 27.03.2017
issued by the Executive Engineer, BSEIDC the
dated fixed for the final measurement of the
work done by the petitioner.
20. That as per letter no.117 dated 27.03.2017
of the Executive Engineer, BSEIDC request has
been made from the Director, Information and
public relation department to publish the
information in the Hindi and English news
paper regarding the final measurement of the
work.
21. That in the information has been published
in Hindi news paper "Prbahat Khabar" dated
06.04.2017 regarding the final measurement.
22. That as per Notice Inviting Tender No.-21
year 2017-18 was published for completion of
remaining work after completed the final
measurement of the work already done."
8. It is also relevant to quote the order of termination of
contract dated 04.02.2016, which is impugned herein:-
Patna High Court CWJC No.6436 of 2017 dt.05-05-2023
पतत्रांक- BSEIDC/TECH/466/2015- 1225 पटनन, ददिनत्रांक 04.02.16
पप्रेषक,
ब्रजप्रेश पसनदि
ममुख्य अदभिययतन
सप्रेवन मम
मप्रेससर्स बबी० कप्रे० इयटरपनइजप्रेज,
गनम- धनपमुरन पपो० आरन, थननन-आरन टनउन
दजलन-भिपोजपमुर, दबहनर
दवषय:- दजलन भिपोजपमुर अयतरर्सत उत्कदमत मनध्यदमक दवदनलय गमुप सय० -
USS-08 एकरनरननमन स०-43 SBD/2011-12 ददिनत्रांक 14.03.13
कपो Contract कप्रे Clause 3 (iii) कप्रे पनवधनननों कप्रे अयतरर्सत
दवखयदडित (Rescined) करनप्रे कप्रे सयबध
य मम।
पसयर:- इस कनयर्यालय कन पतत्रांक-437 ददिनत्रांक- 16:01.15 पतत्रांक- 1360
ददिनत्रांक 19.02- पतत्रांक- 7881 ददिननक 01.09.15 एवय पतत्रांक -
9109 ददिनत्रांक 07.10.15 कनयर्सपनलक अदभिय पटनन (पपूवर) पमयडिल
कन जनपत्रांक 65 ददिनत्रांक 27.01.15. पतत्रांक- 147 ददिनत्रांक 09.03
झनपनक 663, ददिनत्रांक 30.11.15. जनपत्रांक- 1054 ददिनत्रांक
20.12.14 पनपत्रांक-693 ददिनत्रांक-2 12.15 एवय पवनक 08, ददिनत्रांक
060116
महनशय,
उपयमुर्सक्त वदरर्सत कनयर्स कपो पपूरर्स करनप्रे कबी अवदध 12 (बनरह) मनह
दनधर्यादरत थबी। लरभिर (तबीन) सनल 10 (दिस) मनह कन समय बबीत जननप्रे कप्रे
बनवजपूदि भिबी कनयर्स पपूरर्स नहहीं दकयन रयन हह एवय कनयर्स लरभिर 20 (बबीस) मनह
सप्रे बयदि हह।
उपयमुर्सक्त पनसयदरक पतनों कप्रे दनरन ससमय कनयर्स पपूरर्स करनप्रे कप्रे दलए
बनर-बनर दनदिर्देदशत दकयन जनतन रहन हह परन्तमु आपकप्रे दनरन कनयर्स पपूरर्स नहहीं करनयन
जन सकन हह।
1. इस कनयर्सलय कप्रे पतत्रांक--437 ददिनत्रांक 16.01.15 दनरन ससमय
कनयर्स पपूरर्स करनप्रे हप्रेतमु स्पषबीकरर पपूछन रयन।
2. कनयर्सपनलक अदभिययतन पटनन (पपूवर) पमयडिल कप्रे जनपत्रांक - 1054
ददिनत्रांक - 26.12.14 दनरन कनयर्स कबी रदत कपो तप्रेज करतप्रे हएमु सबीधनदतशबीघ्र पपूरर्स
करनप्रे हप्रेतमु दनदिर्देदशत दकयन रयन।
Patna High Court CWJC No.6436 of 2017 dt.05-05-2023
3. कनयर्सपनलक अदभिययतन, पटनन (पपूवर) पमयडिल कप्रे जनपत्रांक - 65
ददिनत्रांक 27.01.15 दनरन कनयर्स शबीघ्र पनरयभि कर कनयर्स कबी रदत कपो तप्रेज करनप्रे
हप्रेतमु दनदिर्देदशत दकयन रयन।
4. इस कनयर्यालय कप्रे पतत्रांक - 1360 ददिनत्रांक - 19:02:15 दनरन
कनयर्स कपो पनरयभि कर पपूरर्स करनप्रे हप्रेतमु दनदिर्देदशत दकयन रयन।
5 कनयर्सपनलक अदभिययतन कप्रे पतत्रांक - 147 ददिनत्रांक 09 03:15 दनरन
कनयर्स मम कपोई भिबी रूदचि नहहीं ददिखननप्रे पर इनकपो Debar / कनलबी सपूचिबी मम
डिनलनप्रे हप्रेतमु अनमुशयसन कबी रई ।
6. इस कनयर्यालय कप्रे पतत्रांक - 7881 ददिननक 01.09 15 दनरन
अयदतम रूप सप्रे 10 (दिस) ददिननों कप्रे अयदिर कनयर्स कपो पनरयभि करनप्रे अन्यथन
एकरनरननमन कपो दवखयदडित (Rescined) करनप्रे हप्रेतमु कनरर्सवनई कप्रे सयबध
य मप्रे
दलखन रयन, दजसकप्रे सयबध
य मम आपकप्रे दनरन कपोई भिबी उत्तर अपनप्त हह।
7. इस कनयर्यालय कप्रे पतत्रांक -9109, ददिननक 07-10-2015 दनरन
बनर-बनर दनदिर्देदशत करनप्रे कप्रे बनवजपूदि कनयर्स पनरयभि नहहीं करनप्रे कप्रे कनरर बनध्य
हपोकर Defaulter घपोदषत करतप्रे हएमु जरलबी दनदवदिन मम भिनर लप्रेन प्रे सप्रे
(Debar) करनप्रे कन आदिप्रेश दनरर्सत दकयन रयन।
8 कनयर्सपनलक अदभिययतन पटनन (पपूवर) पमयडिल कप्रे जनपत्रांक - 063
ददिनत्रांक 30.11.15 दनरन कनयर्स कपो 10 (दिस) ददिननों कप्रे अयदिर पनरयभि करनप्रे हप्रेतमु
अनमुरपोध दकयन रयन दजसकन आपकप्रे स्तर सप्रे न तपो कपोई उत्तर ददियन रयन और
न हबी कनयर्स कपो पनरयभि दकयन रयन।
9. पमुननः कनयर्सपनलक अदभिययतन , पटनन (पपूवर) पमयडिल कप्रे जनपत्रांक -
093, ददिनत्रांक - 211215 दनरन अयदतम रूप सप्रे 10 (दिस) ददिननों कप्रे अयदिर
कनयर्स कपो पनरयभि करनप्रे अन्यथन एकरनरननमन कबी शतरय कप्रे अनमुसनर अगत
कनरर्सवनई हप्रेतमु उच्चिनदधकनदरयनों कपो पदतवप्रेददित करनप्रे कप्रे सयबध
य मम पत दलखन
रयन। इसकप्रे बनवजपूदि आपकप्रे दनरन न तपो कनयर्स कपो पनरयभि दकयन रयन और न
हबी कपोई उत्तर ददियन रयन।
10. कनयर्सपनलक अदभिययतन पटनन (पपूवर) पमयडिल कप्रे पतत्रांक-06 ददिनत्रांक
06.01.16 दनरन कनयर्स पनरयभि नहहीं करनप्रे एवय पतनों कन कपोई उत्तर नहहीं दिप्रेन प्रे कप्रे
फलस्वरूप बनध्य हपोकर एकरनरननमन कपो दवखयदडित (Rescined) करनप्रे हप्रेतमु
अनमुशयसन कबी रई।
उपयमुर्सक्त पनसयदरक पतनों दनरन समय कनयर्स पपूरर्स करनप्रे कप्रे दलए आपकपो
बनर-बनर अनमुरपोध / दनदिर्देदशत दकयन जनतन रहन हह परन्तमु आपकप्रे दनरन समय
कनयर्स करनप्रे मम कपोई रूदचि नहहीं लबी रयबी।
अतनः उपरपोक्त तथ्यनों एक जनदहत लपोकदहत एवय कनयर्सदहत मम सयदवदिन
कप्रे कदडिकन 3 (ii), (iv) एवय (V) कप्रे अयतरर्सत Contract Agreement
Patna High Court CWJC No.6436 of 2017 dt.05-05-2023
सयख्यन 43 SBD of 2011-12 ददिनत्रांक- 14.03.2013 कपो 'तत्कनल पभिनव
सप्रे सयवप्रेदिक कप्रे Risk and Cost पर दवखदडित (Rescined) दकयन जनतन
हह। सनथ हबी सयवप्रेदिक कप्रे दवरुद्ध Contract कप्रे कदडिकन (Vii) (a) तहत
Earnest Money Deposit, Security Deposit तथन Performance
Guarantee जन्त करनप्रे कप्रे सनथ-सनथ सयदवदिन कप्रे अन्य समुसयरत कदडिकनओय
कप्रे अधबीन अन्य कनरर्सवनई कबी जनयप्रेरबी।
दवशनसभिनजन
Sd/
ममुख्य अदभिययतन
09. From the above discussions, we do not think that the
impugned order needs any interference if the petitioner has
failed to abide by the specific terms of agreement. The
respondent department rightly took the decision to terminate
the agreement existed into with the petitioner. Thus, the
petitioner has failed to make out any case so as to interfere with
the order dated 04.02.2016 passed by the Chief Engineer.
10. It is well settled principle of law that the
constitutional courts are expected to exercise restrain in
interfering with the administrative decisions and they ought not
to substitute their views substituting that of the administrative
authority.
11. In the light of aforementioned facts and
circumstances of the case, in our opinion, no illegality or
irregularity has been committed by the respondents in passing
the impugned order rescinding the contract and the reasons
Patna High Court CWJC No.6436 of 2017 dt.05-05-2023
assigned for the same are well justified, which do not require
interference by this Court.
12. Accordingly, this writ petition stands dismissed.
13. Pending application, if any, stands disposed of.
(P. B. Bajanthri, J)
( Arun Kumar Jha, J)
V.K.Pandey/-
AFR/NAFR AFR
CAV DATE 18.04.2023
Uploading Date 05.05.2023
Transmission Date N.A.
